Travel Food Services IPO Highlights: Issue Booked 3.03 Times; Check GMP And Other Details

The Initial Public Offering (IPO) of Mumbai-based Travel Food Services closed on Wednesday, July 9, after witnessing decent investor interest on all 3 days. The IPO received an overall subscription of 3.03 times with mixed investor sentiments.

Here's a quick guide to check your IPO details, find out the listing date, and see the latest updates on the grey market premium (GMP) and other important details.

Subscription Details:

On Day 3 (July 9), the Travel Food Services IPO was subscribed 3.03 times in total. Retail investors subscribed 73%, Non-Institutional Investors (NII) subscribed 1.67 times, and Qualified Institutional Buyers (QIB) subscribed 8.10 times. According to data from chittorgarh.com at 5:04 PM IST, the company received 3,86,69,878 bids for 1,27,42,199 shares available.

The subscription to the Travel Food Services IPO increased steadily over the past three days. On Day 1, it was subscribed 11%, followed by 26% on Day 2, and closed at 2.03 times by the end of Day 3.

Travel Food Services IPO Allotment and Listing Date:

The share allotment for the Travel Food Services IPO is expected to be finalized on Friday, July 10, followed by the initiation of refunds and credit of shares to the Demat accounts of successful bidders on July 11. The shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on July 14.

Grey Market Premium (GMP):

The last GMP for Travel Food Services IPO is Rs 6 updated on July 9 at 7.30 PM. This suggests that the share could list at around Rs 1106, which is 4.21% higher than the upper end of the IPO price band (Rs 1,100), according to investorgain.com.

The GMP has ranged between Rs 0 to Rs 92 in the past 9 days, and the current trend shows falling interest in the IPO, indicating a potentially weak stock market debut.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Travel Food Services IPO Details:

Travel Food Services is a Rs 2,000 crore IPO, which is completely an Offer-for-Sale (OFS) of 1.82 crore shares by its promoter, the Kapur Family Trust.

The price band for the IPO was set between Rs 1,045 and Rs 1,100 per share. Investors were allowed to place bids in lots of 13 shares and in multiples of that. The minimum investment for retail investors was Rs 13,585, while the maximum for one lot was Rs 14,300. The company also offered a discount of Rs 104 per share to eligible employees.

In the IPO, up to 50% of the shares were reserved for Qualified Institutional Buyers (QIBs), at least 35% for retail investors, and a minimum of 15% for Non-Institutional Investors (NIIs). Additionally, shares worth Rs 4 crore were set aside for eligible employees.

Travel Food Services had received Rs 598.80 crore anchor investment ahead of the IPO.

The IPO is managed by Kotak Mahindra Capital Company, HSBC Securities and Capital Markets (India), ICICI Securities, and Batlivala & Karani Securities India.

About Travel Food Services:

Travel Food Services is a leading operator of quick-service restaurants (QSRs) and airport lounges, with a presence in 14 Indian airports, 3 in Malaysia, and 1 in Hong Kong. As of June 30, 2024, it runs 397 QSR outlets and 37 lounges, mostly located inside airports.

Founded in 2007, the company is promoted by London-based SSP Group and the Kapur Family Trust, under the K Hospitality brand. It offers 117 partner and in-house food brands, including international names like KFC, Pizza Hut, and Subway, Jamie Oliver's Pizzeria, Wagamama, Coffee Bean & Tea Leaf, and Krispy Kreme as well as Indian favorites like Wow! Momo, Hatti Kaapi. Third Wave Coffee, Sangeetha, and Bikanervala.

The company has also developed its own in-house brands like CafA ©ccino, idli.com, Dilli Streat, and Curry Kitchen.

Industry View on The IPO:

Travel Food Services IPO had received 62.50% apply rating 18.25% had given a May apply while 12.50% were neutral for it, according to chittorgarh.com.

"The company plans to grow by improving products and efficiency to benefit from rising air travel in India. With a post-IPO valuation of Rs 14,484.7 crore and a P/E of 38.2x, the IPO is seen as fairly priced," said Analysts at Anandrathi, recommending with a "Subscribe - Long Term" rating.

Cananra Bank Securities also had a similar response for the IPO. Recommending Subscribe for listing gains and long-term investment, they had said, "Travel Food Services has a strong presence in airport food services, backed by global ties and long-term contracts. The IPO is attractively priced and offers good growth potential.

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